Renters Insurance
Posted on: June 13, 2007
Photo by Sarah Harmon of Hood Photography
Landlords Should Make Sure They Have It
Most people moving into a new apartment aren’t thinking about purchasing rental insurance. According to the Insurance Information Institute, three out of four apartment dwellers go without purchasing such coverage. But if renters stopped to think how much it would cost to replace all their possessions if destroyed by a fire or other catastrophe, the monthly expense seems much more reasonable. A typical three room apartment could contain up to $25,000 worth of furniture, electronics, clothes, and other possessions. Renter or tenant insurance is needed to protect their personal belongings and household contents from a loss.
More Than Just Fires
A renter’s policy can protect your possessions against mishaps, including fire, windstorms, hail, explosion, smoke, vandalism am malicious mischief, theft, and even frozen plumbing. Subject to guidelines, renters insurance also covers:
- Living in a hotel while your apartment is being repaired after a covered loss.
- Personal liability lawsuits, and injured visitors.
If your tenant does not have insurance, who do you think will pay for an injured visitor, or the loss of tenant belongings due to fire or theft? Even if you, as a landlord, feel you are not legally obligated to pay for these losses, I can assure you that there is always someone out there who will think differently.
You as a Tenant
Make sure your possessions are protected in today’s dollars by purchasing replacement cost renter coverage. It pays the actual cost of replacing list items. This coverage will also provide personal liability. Don’t assume your landlord’s insurance covers your losses.
The Rental Agreement
Communicate with your tenants to purchase renter insurance. Have your insurance agent provide flyers for free quotes; they should know the building. Make sure it is noted in your renter’s agreement that you are not responsible for any of their personal belongings. Have your tenant sign off to this statement.
Article written by Doug Waddle, broker for portlandrealestate.com.